MTN placed on review for downgrade by Moody’s, what you need to know…

PUBLISHED: Thu, 06 Sep 2018 18:31:02 GMT

JOHANNESBURG (Reuters) – MTN Group has been put on review by Moody’s for downgrade after the South African mobile phone operator said it was on the hook for a total of $10.1 billion from its biggest market Nigeria, the ratings agency said on Thursday.

“MTN’s ratings have been placed on review for downgrade to reflect the uncertainty around the potential implications of the recent CBN (Central Bank of Nigeria) and NAG (Nigerian Attorney General) announcements on MTN’s credit profile,” Moody’s said.

Africa’s biggest wireless phones group said on Tuesday the Nigerian Attorney General was seeking $2 billion in taxes incurred over the last decade.

That followed an order days before from that country’s central bank that MTN’s Lagos-based unit hand over $8.1 billion that it said was illegally sent abroad.

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